National economy minister says gov’t will raise, not freeze, public sector wages

MTI – Econews

Wednesday, April 20, 2011, 17:40

The government plans to raise, not freeze, public-sector wages, National Economy Minister György Matolcsy said.

The government has undertaken to cut the number of public sector employees by 5%, Matolcsy said, commenting the government's updated Convergence Program presented to the European Commission on April 15. The 5% drop corresponds to the natural attrition rate, he said.

The updated Convergence Program, in fact, calls for a rise in public-sector wages next year, similar to this year, he said noting that the reduction in the overall amount of wages paid out in the sector stems from the decline in the number of employees.

Related articles

Gross salaries rose on average by HUF 30,000-40,000 in May year-on-year, the Central Statistical Office (KSH) reported, cited by pro-government daily Magyar Idők. The highest raises were in the sector of public administration.

Hungaryʼs rolling average three-month jobless rate reached 3.6% in April-June, declining from 3.7% in the preceding three-month period and down from 4.3% in the corresponding period a year earlier, the Central Statistical Office (KSH) said on Friday.

Education statistics in Hungary show a mixed picture. While the rate of employment among recent graduates is among the highest in Europe, and above the EU average, the rate of early leavers from education is also rising.

Experts at Big Four consultancy KPMG analyzed the state of digitalization, economic growth, and the growing influence of Generation Y during a breakfast briefing based on its latest research, attended by the Budapest Business Journal.

The rolling three-month average rate of joblessness in Hungary for March–May 2018 decreased by 0.7 of a percentage point year-on-year to 3.7%, slightly down on the 3.8% rate recorded in February-April. Meanwhile, the employment rate among Hungarians aged 15–64 grew by 1.4 percentage points to 69.1%.

In January–April 2018, average gross earnings amounted to HUF 322,400, while average net earnings totaled HUF 214,400. Both the latter grew to the same extent, by 12.4% compared to the first four months of 2017. In April 2018 alone, average gross monthly earnings were 12.6% higher than a year earlier.

Beginning from 2019, the government will eliminate all limitations on hiring pensioners to work, Gergely Gulyás, head of the Prime Ministerʼs Office, said on Thursday, detailing some information made public on Wednesday by Minister of Finance Mihály Varga.

The four main goals of the budget are ensuring the security of the country, maintaining strong economic growth, supporting families, and continuing to work to achieve full employment. A disciplined fiscal policy will be continued and reserves will be raised by 50%, the government says.

The number of job vacancies has been rising in Hungary at an accelerating pace in the past five quarters, with the year-on-year rate of increase reaching 33% by the first quarter of 2018, reveal figures from the Central Statistical Office (KSH) released Friday.